DaybaseFranchise Cost, Revenue & Review 2026
Data from FDD filing
FranchiseVerdict summary · 2026
A DAYBASE franchise requires a total initial investment of $1.3M – $1.7M, including a $50K franchise fee and an ongoing 7.0% royalty[2]. The 2022 FDD does not disclose unit-level revenue (no Item 19). Verdict grade: C. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $1.3M – $1.7M
- 54th pct Business Serv…
- Avg gross sales
- N/A
- 29th pct Business Serv…
- Royalty
- 7.0%
- 15th pct Business Serv…
- Units
- 0
- 0th pct Business Serv…
- SBA default
- N/A
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- Total investment $1.3M – $1.7M including a $50K franchise fee, 7.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict C (Average) with a risk score of 69/100.
- No Item 19 financial performance representation. Without franchisor-disclosed revenue data, you'll need to gather unit economics directly from existing franchisees.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Daybase Franchising, LLC
- Parent company
- Daybase, Inc.
- CEO title
- President and Chief Executive Officer
- Joel Steinhaus
- CEO experience
- 14 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- DE
- HQ
- 335 Madison Avenue, 3rd Floor, New York, New York 10017
- Auditor
- Citrin Cooperman & Company, LLP
- Audited financials
- Franchisor revenue
- $0
- Most recent fiscal year
Overview
About
DAYBASE franchisees appear to operate flexible workspace or coworking facilities (referenced as 'Workspot'). Day-to-day operations likely include member onboarding, facility management, maintenance, billing administration, and community programming, though the exact service model is unclear from available disclosure.
- CEO
- Joel Steinhaus
- Headquarters
- NY
- Founded
- 2021
- FDD year
- 2022
- States available
- 0
FDD Item 7 · 2022 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $105K | $110K |
| Equipment, build-out, other | $1.1M | $1.6M |
| Total initial investment | $1.3M | $1.7M |
Source: DAYBASE 2022 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $1.3M – $1.7M
- Near category avg vs category
- Liquid capital req'd
- $105K – $110K
- Near category avg vs category
- Franchise fee
- $20K – $50K
- Better than avg vs category
- Royalty
- 7.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $1K |
| Transfer fee | $40K |
| Renewal fee | $5K |
| Total fee load | 10.0% of rev |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Business Services averages
How Daybase Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 0
- Opened
- 0
- Last reporting year
- Closed
- 0
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Company-owned
- 0
- Corporate units in the system
- Multi-unit owners
- 5.0%
3-year detail · Item 20
- Transfers (3yr)
- 0
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
DAYBASE presents extreme risk: zero operating franchises, going concern status, undisclosed financials, and a $1.7M+ investment in an unproven model with no comparable unit performance data.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Citrin Cooperman & Company, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 69 / 100 rating
- 01HIGHGoing Concern status indicates financial instability or viability questions at franchisor level
- 02MINORZero existing franchise units suggests brand has never successfully scaled or is in early/failed launch phase
- 03MEDNo average revenue or net income disclosure (missing Item 19) prevents ROI validation and suggests poor unit economics
- 04MINORHigh initial investment ($1.25M-$1.7M) with unproven profitability model creates severe financial risk
- 05MINORRoyalty structure tied to 'Workspot's Gross Revenue' is non-standard and suggests unclear or dependent business model
- 06MEDNo disclosed unit growth history raises questions about market viability and franchisee retention
- 07MINOR10-year term locks franchisee into unproven concept with no performance track record
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Geographical Area of Protection |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 30 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Arbitration location | New York, New York |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 32 hrs
- On-the-job training
- 0 hrs
- Training location
- franchisor's principal business address or another designated location
- Time to open
- 6 mo
- From signing to launch
- POS system
- DBTech
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: DBTech
Item 20 · call current owners
Franchisee Contacts
7 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
DAYBASE · FDD (2022) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a DAYBASE franchise?
The total investment to open a DAYBASE franchise ranges from $1.3M – $1.7M, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do DAYBASE franchise owners earn?
DAYBASE does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is DAYBASE's franchise failure rate?
SBA 7(a) loan charge-off data is not available for DAYBASE (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
Is DAYBASE a good franchise to buy?
FranchiseVerdict rates DAYBASE as a C-grade franchise with a risk score of 69 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.